What is LNG?

Liquefied natural gas is natural gas that has been cooled to 260 degrees below zero Fahrenheit, until it condenses. It takes up 600 times less space than at room temperature.

Once cooled, the gas can be transported across the ocean on ships. At import terminals like Sempra’s Energia Costa Azul LNG plant in Baja California, the gas is allowed to warm and expand and is then put into pipelines for distribution along with domestic supplies of natural gas. Once LNG is warmed up and put in pipelines, it’s no longer LNG but simply natural gas

Sempra LNG, a timeline

2001-2002 — Sempra is one of several energy players to consider building LNG plants in Baja California to supply U.S. and Mexican customers. The proposals face opposition from local residents who consider them dangerous and unsightly.

Summer 2002 — Sempra gets an option for a site near the Bajamar golf resort north of Ensenada, which is rezoned from a protected designation to accommodate an LNG project, drawing protests from both sides of the border.

April 2003 — Sempra and Shell get environmental permits to build the LNG plants.

August 2003 — Sempra announces it has received the last two of three permits it needs to build its LNG plant — a land-use permit from Ensenada and a development permit from Mexico’s national energy regulatory agency.

December 2003 — Sempra signs a deal with BP and Indonesia for import of natural gas and makes a deal with Shell to share capacity at its Costa Azul plant.

July 2004 — The land-use approvals granted by the Ensenada mayor, a member of the PAN, become an issue in municipal elections.

April 8, 2009 — Russian energy giant Gazprom announces that it has entered into a $5 billion deal to buy a share of Shell’s 50 percent capacity at Costa Azul so it can sell natural gas from Siberia to the United States.

November 2010 — Rodolfo Michelon, a former Sempra executive, accuses Sempra of wrongful termination in a lawsuit, claiming he was fired for asking too many questions about bribes and business practices in Baja.

February 11, 2011 — Ensenada’s new mayor decides to shut down plant; but police are rebuffed by federal authorities.